Syracuse, NY -- An insider trading investigation involving several Central New York men expanded into a criminal indictment Tuesday, charging one of them with accepting $2 million in kickbacks for the development of new Dick's Sporting Goods stores, according to federal prosecutors.

Gary Gosson, 52, of Onondaga, was indicted on 18 counts, including mail and wire fraud for the alleged kickbacks from 1998 to 2005, prosecutors said. He also faces charges of insider trading in connection with Dick's acquisition of Galyan's Trading Co. in 2004.

Camp, Gosson and former Dick's vice president of real estate, Joseph Queri Jr., of Pittsburgh, were indicted on four counts of securities fraud and one count of conspiracy to commit securities fraud through insider trading. Queri and Gosson face one count of tender offer fraud and Camp with four counts. Each count of securities and tender offer fraud carries a maximum 20-year prison sentence and a $5 million fine.

The U.S. Securities and Exchange Commission sued Gosson and 15 other people last year, accusing them of using confidential information about the sale of Galyan's to make a $620,000 profit in one week.

The commission alleged that Dick's former vice president of real estate tipped off his golfing buddy, Gosson, who then told others: Camp; Alan J. Johnson, of Syracuse; Mark J. Costello, of Cincinnati; Michael A. Santaro, of Syracuse; Joseph A. Frederico, of Syracuse; and Philip J. Simao, of Alexandria Bay, the lawsuit claimed.

The defendants all bought Galyan's stock at $11.10 per share in June 2004, and sold it a week later after the merger announcement, for $16.68 per share, the lawsuit stated.

The twist in Tuesday's indictment is that Gosson, along with Queri and a North Carolina man, Benjamin Viloski, 60, also face charges of receiving and concealing kickbacks in the development of new Dick's stores. They were charged with five counts of mail fraud and deprivation of honest services mail fraud, four counts each of wire fraud and deprivation of honest services wire fraud and concealment money laundering, three counts of transactions in criminally derived property, as well as one count each of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering and engage in transaction in criminally derived property.

Assistant U.S. Attorney Steven Clymer could not be reached for comment. Gosson's lawyer, Sal Piemonte, declined comment about all aspects of the case.

Camp's lawyer, James McGraw, said his client didn't know about the purported insider trading when he invested in Galyan's before Dick's bought it.

McGraw said his client has known Gosson for 30 years, but never received advice from him to buy into Galyan's stock. The lawyer said he did not know how Gosson and the others were tied to the kickbacks investigation.

Several of the participants have agreed to pay fines to the SEC. Camp did not.
"He won't pay them five cents," McGraw said. "It's ridiculous."

Queri agreed to pay $218,000 in April. The SEC also reached agreements with Federico for $54,000, Santaro for $42,000, Simao for $31,000 and Costello for $22,000.
Contact Douglass Dowty at 470-6070 or ddowty@syracuse.com